Planning (Buyer’s Perspective)
The buyer must carefully analyze all of the information submitted by the seller. The buyer also can select specific items from the seller’s proposal to negotiate. The buyer also must evaluate the seller’s strengths and weaknesses.
Data collection is the first step in the preparation process. The next step involves establishing the negotiation’s objectives, strategies, and tactics.
Prior to the negotiations, the negotiations’ objectives should be established. The buyer should establish specific direct cost dollar amounts and profit limits.
[Slide 13 Notes]